ZAR outlook
USD/ZAR expected range: 9.80
– 9.90
The Rand has started the new week on a
stronger bias as it has held its ground after last week’s recovery. The recovery
was spurred by positive Chinese data. This has meant that investor sentiment is
slightly more upbeat.
Local news
Although there has been some positive news coming from outside our
borders the Rand is still not out of the woods. The reason is that as an
economy the Rand is still at risk from a structural perspective. The South
African economy still has twin deficits, labour issues, productivity and
possible electricity supply problems. South Africa will need to manage these
issues before we will see a strong recovery in the Rand.
International news
Apart from the Chinese data which surprised on the upside we are
awaiting data from the Eurozone and the UK, which if also comes through on the
upside then could mean the Rand may strengthen.I f it manages a sustained level
below the 9.775 which is a resistance level, it could possibly open up to lower
USD/ZAR levels. Investors are still keeping focus on any FED announcement
regarding the easing of QE
TODAYS KEY DATA POINTS:
7am+: SA earnings (GRF, RBP)
Foreign exchange South Africa– Let one of our professional
consultants at Currency Solutions assist you. To know more about how we can
help you Contact Us.
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